
In a significant moment for Nigeria’s economic planning, President Bola Ahmed Tinubu arrived at the National Assembly complex at exactly 12:10 pm on Wednesday to present the 2025 budget proposal.
The event was marked by heightened security, reflecting the importance of the occasion.
This budget presentation follows the Federal Executive Council’s approval of the proposed 2025 budget earlier this week. On November 22, the Senate had already endorsed the Medium-Term Expenditure Framework (MTEF) for 2025-2027, paving the way for this crucial step in the country’s fiscal planning process.
The President is set to unveil a proposed budget of ₦47.96 trillion to a joint session of the National Assembly. The proposal is expected to align closely with the fiscal strategies outlined in the MTEF document, ensuring that the country’s financial goals remain on track.
The budget size remains N47.96tn as the MTEF proposed, with new borrowings of N9.22tn, the Minister of the Budget and Economic Planning, Abubakar Bagudu, told journalists after the Federal Executive Council meeting at the Aso Rock Villa, Abuja.
The council approved the MTEF and Fiscal Strategy Paper on November 14, 2024.
The MTEF, a critical tool the FG uses to outline its fiscal strategy over three years, establishes macroeconomic assumptions and targets that guide national budgeting.
It also includes projections of key economic variables such as oil prices, exchange rates, inflation and growth rates.
For the 2025-2027 period, the MTEF sets out parameters, including an oil price benchmark of $75 per barrel, an oil production target of 2.06 million barrels per day, an exchange rate of N1,400 to the US dollar, and a GDP growth rate of 4.6 per cent.
Its projected aggregate expenditure for 2025 is N47.96tn, with planned borrowing of N13.8tn, equating to 3.87 per cent of GDP.
On Monday, Bagudu announced,
“Today, the Federal Executive Council approved the budget proposals 2025 with amendments which Mr President directed following a presentation to the Federal Executive Council led by the Director-General of the Budget Office, Tanimu Yakubu.
“The 2025 framework is based on an oil price benchmark of $75 per barrel. Oil production of 2.06 million barrels per day; exchange rate of N1,400 (to the dollar).
“All these are already included in the medium-term expenditure framework we have presented here, which has also been approved by the National Assembly.”
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